Children and Taxes

There are significant tax exemptions built into the IRS tax code for having children. In the case of a divorced couple, though, the issue can become a contentious one, because having the tax exemptions can be a very desirable position for both sides. It is important to come to an understanding of who will have the exemption before filing a tax return so that the conflict does not become time-sensitive.

The IRS rule about tax exemptions for a child is that the parent that pays for more than 50% of the child’s expenses claims the exemption. The child’s expenses include everything from his or her share of the mortgage and utilities to food, gas, and other living expenses. In general, this means that the exemption goes to the parent with whom the child lives for more than half of the year.

In some cases, the divorce decree will actually state which parent gets to claim the exemptions. Typically, this is the parent with primary custody of the children, but it is not nearly as clear in situations where the two parents share custody or expenses.

Also, if one spouse is given the exemption in the divorce agreement and the circumstances change, then the other spouse may file to have the exemption granted to them instead.

Contact Us

If you are considering getting a divorce, it is important to understand the full implications of the decision. Not the least of these concerns are the tax issues that will arise and it can be very helpful to have legal counsel helping you through these complex processes. For more information, contact the West Palm Beach divorce lawyers of Eric N. Klein & Associates, P.A. by calling 561-353-2800.